In 2025, the Winchester EDA commissioned a quantitative analysis of the fiscal impact of a casino development on tax revenue in the City of Winchester. Conservative parameters were used when producing the report to ensure projections do not overestimate any benefit.
2025 EDA Casino Report Overview(PDF, 1MB)
A development of this nature would generate tax revenue beyond the required local gaming tax. Casino operators must pay real estate taxes, personal property taxes, business personal property, and business license taxes like all other business in the City. Taxes such as the sales tax, meals tax, lodging tax, and admissions taxes are use taxes that are tied to individual consumption habits. Increased tourism derived from a casino would increase projected use taxes.
Estimated Annual City of Winchester Tax Revenue from Casino Development (2025 Dollars)
| Revenue Source |
Tax Rate |
Tax Base |
Annual Tax Revenue |
|
Real Property Tax
|
$0.795/$100 |
$172,600,000 |
$1,372,000 |
| Business Personal Property |
$4.50/$100 |
$71,700,000 |
$1,936,000 |
| Sales Tax |
1.00% |
$78,010,000 |
$780,000 |
| Meals Tax |
6.50% |
$31,827,000 |
$2,069,000 |
| Lodging Tax |
8.00% |
$16,722,000 |
$1,338,000 |
| Gaming Tax |
6%, 7%, 8% |
$300,000,000 |
$19,000,000 |
| Business License Tax |
$0.2 per $100 |
$378,010,000 |
$756,000 |
| Admissions Tax |
5.00% |
$6,300,000 |
$315,000 |
| Annual Local Tax Revenue |
|
|
$27,566,000 |
For reference, the FY26 budget for the City of Winchester is $120.5 million. A projected annual local tax revenue of approximately $27.6 million would represent an annual cash influx equal to 23% of the City's current budget.
Casinos require significant, private investment and are ineligible for economic development incentives. Initial private investments for Virginia's currently approved casinos range from $340 million to $1.4 billion in construction alone.
Private Investments for Virginia's Currently Approved Casinos
| Location |
Operator |
Initial Investment |
Opening Date |
| Bristol |
Hard Rock International |
$515 million |
Temp: Jul. 2022
Perm: Nov. 2024
|
| Danville |
Caesars Entertainment |
$750 million |
Temp: May 2023
Perm: Dec. 2024
|
| Norfolk |
Boyd Gaming/Pamunkey Tribe |
$750 million |
Temp: Nov. 2025
Perm: Late 2027
|
| Portsmouth |
Rush Street Gaming |
$340 million |
Perm: Jan. 2023 |
| Petersburg |
Bruce Smith Enterprise LLC/The Cordish Companies |
$1.4 billion |
Temp: Early 2026
Perm: Late 2027
|
Casino operators pay significant taxes to the State and the localities in which they operate. The Virginia Lottery maintains monthly casino wagering reports including breakdowns of all tax revenue collected for currently open casinos.
YTD CY25 Gaming Taxes paid by currently open casinos
| Category |
Bristol |
Portsmouth |
Danville |
| Totals |
$12,847,623.09 |
$16,471,497.94 |
$20,688,708.16 |
*Derived from VA Lottery monthly casino wagering reports (Jan. to Oct. 2025)
VA Lottery Monthly Reports
Proposed Spending Priorities
Of the previously discussed $27.6 million in tax benefit the City of Winchester could receive, approximately $19 million would come from the State mandated gaming tax. If a development of this type were approved, the Winchester EDA advocates for City Council to consider the following spending priorities for any gaming tax received:
| Category |
Description |
Percentage |
Proposed Investment Range |
| City Infrastructure |
Traffic Improvements, Stormwater Management |
5 - 20% |
$950,000 - $3,800,000 |
| Economic Development |
Business Attraction, Retention, Expansion, Housing Affordability |
5 - 20% |
$950,000 - $3,800,000 |
| Education |
Winchester Public Schools |
5 - 20% |
$950,000 - $3,800,000 |
| Long-term Financial Stability |
Debt Service on Long-term Capital Improvement Projects |
5 - 20% |
$950,000 - $3,800,000 |
| Public Safety |
Law Enforcement, Fire & Rescue |
5 - 20% |
$950,000 - $3,800,000 |
| Quality of Life |
Walkability, Public Parks, Recreational Programming |
5 - 20% |
$950,000 - $3,800,000 |
| |
|
|
|
| Remainder (General Fund) |
Council Priorities (including effective tax rate stabilization) |
10% |
$1,900,000 |
With an estimated annual gaming tax revenue of $19 million dollars, this split would allocate an approximate range of $950,000 to $3.8 million to each listed priority per year with an additional $1.9 million towards the General Fund. The EDA would further advocate for all other taxes received from a development of this type (Real Estate, Business Personal Property, Sales, Meals, Lodging, Business License, and Admissions taxes), approximately $8.5 million, be applied towards the General Fund to finance Council priorities including effective tax rate stabilization.
Last updated 12/19/25